China Jushi | FY2002 business review

During 2002 the group changed its portfolio through asset swaps and disposals. Plastic flooring, PVC pipes and fittings, and general merchandise-market activities were removed, while commercial property, home-product chain distribution and logistics, and other new-material activities entered the portfolio. Management set three strategic directions: new materials including glass fiber, commercial property, and home-product retailing and logistics. These were the group's stated business directions at this time, before its later concentration on glass fiber.

The FY2002 as-filed consolidated accounts report glass fiber and related products revenue of CNY 573.30283690 million and associated main-business cost of CNY 394.87831000 million; other products and operations contributed CNY 61.09134799 million of revenue and CNY 31.47947368 million of cost. Together they reconcile to CNY 634.39418489 million of main-business revenue and CNY 426.35778368 million of cost. The same filing's 2001 comparatives are CNY 449.83603494 million revenue and CNY 305.21771733 million cost for glass fiber, and CNY 81.48751226 million revenue and CNY 50.06306094 million cost for other activities. The subtraction of revenue and these costs is before main-business taxes and surcharges, so it is not the report's main-business profit or net profit. Management describes price pressure and responses through product quality, global marketing, cost control and research; these are attributed explanations, not independently measured drivers. Disposed operations continued to contribute income for the periods identified in the consolidation note, so these product comparisons are not automatically a constant-perimeter measure.

Reported business revenue / 2002 / fy2002 consolidated glass fiber

RMB 573,302,836.9

Reported business cost / 2002 / fy2002 consolidated glass fiber

RMB 394,878,310

Reported business revenue / 2002 / fy2002 consolidated other products

RMB 61,091,347.99

Reported business cost / 2002 / fy2002 consolidated other products

RMB 31,479,473.68

Reported business revenue / 2001 / comparative fy2002 consolidated glass fiber

RMB 449,836,034.94

Reported business cost / 2001 / comparative fy2002 consolidated glass fiber

RMB 305,217,717.33

Reported business revenue / 2001 / comparative fy2002 consolidated other products

RMB 81,487,512.26

Reported business cost / 2001 / comparative fy2002 consolidated other products

RMB 50,063,060.94

Management describes intense domestic and international competition and falling glass fiber prices. Jushi Group responded with technical innovation and upgrades, cost and consumption reductions, new-product development, improved product quality and after-sales service, and expansion of its global marketing network. These are management's descriptions of the response. The passage does not quantify a saving from each initiative or establish a commercial qualification for each new product.

The five largest suppliers represented 43.87% of procurement, with purchases of RMB 116.12 million. The five largest customers represented 32.87% of group sales, with sales of RMB 208.56 million. These measures show concentration in the disclosed group totals. They do not identify named customers for a particular glass formulation, nor can the totals be assigned entirely to a newly acquired business without additional segment evidence.

The consolidated geographic revenue table reports domestic sales of CNY 306.55986632 million and exports of CNY 327.83431857 million in 2002, compared with CNY 292.65126500 million and CNY 238.67228220 million respectively in the same filing's 2001 comparative. Domestic and export figures sum to the main-business revenue total in each year. The overview rounds the FY2002 split to 48% domestic and 52% export. These figures describe reported revenue geography, not production locations, customer end-use industries, export tonnes or named-country market shares. No geographic cost table is provided in this note, so the reader cannot infer export profitability from revenue alone. The parent company's own revenue table is separate and is not a substitute for the consolidated export business.

Reported business revenue / 2002 / fy2002 consolidated domestic

RMB 306,559,866.32

Reported business revenue / 2002 / fy2002 consolidated exports

RMB 327,834,318.57

Reported business revenue / 2001 / comparative fy2002 consolidated domestic

RMB 292,651,265

Reported business revenue / 2001 / comparative fy2002 consolidated exports

RMB 238,672,282.2

The listed company transferred all Jiujiang factory assets and liabilities to Jushi Group for RMB 38.2222 million. Payment combined assumption of RMB 33.47 million in bank debt with RMB 4.7522 million in cash; the report says ownership changes and asset handover were completed. This is an ownership and organisation change within the glass fiber business, distinct from the physical progress of the Jiujiang production projects.

Under an agreement dated 10 October 2002, the listed parent transferred the entire old Jiujiang factory's assets and liabilities to its controlled Jushi Group at a reported price of CNY 38.2222 million, based on the assessed net assets at 31 August. Payment consisted of Jushi Group assuming CNY 33.47 million of bank debt and paying CNY 4.7522 million in cash; the report says payment, asset handover and ownership changes were completed. Thus CNY 38.2222 million is not a cash receipt. This moved the factory into Jushi Group and its newly established Jiujiang company, rather than showing an exit from the glass-fiber business. It also does not establish that the new 10,000-tonne production line was already commissioned in 2002.

The fixed-asset note reports CNY 26.4772 million buildings and CNY 177.9525 million machinery pledged for CNY 86 million long-term and CNY 15 million short-term borrowing. The maturity note places the CNY 86 million loan in the current portion at year end, so the asset-note label is not a second borrowing balance. Its collateral schedule names CNY 155.274 million machinery for that loan and CNY 22.6785 million machinery for the short-term loan; these sum to the asset note's CNY 177.9525 million machinery. The intangible-asset note shows earlier Pukou and Weiyang West Road land rights transferred out, while second-phase factory land remains at CNY 5.76228110 million carrying value. These records provide funding and asset-perimeter context; they do not establish coordinates, street-level operating sites or that all title certificates were complete.

For 2003 management intended to strengthen the core business, adjust the portfolio and improve management. Its operating plan envisaged glass fiber and other new materials, commercial property, and home-product chain distribution and logistics advancing together. It also proposed exploring new business areas and expanding proprietary and agency trade. This is the plan stated in the 2002 report, rather than proof of the following year's outcome.

The 40,000-tonne alkali-free tank-furnace project was in preparatory work: the report says its environmental assessment was approved and its provincial feasibility approval forwarded to the national authority. It does not report this project commissioned in 2002. The new Jiujiang 10,000-tonne environmentally oriented line was under construction, with CNY 25.3892 million investment completed by year end; civil works, equipment orders and technical training were underway. The issuer attributed independently developed waste-fiber remelting technology to this project; that is an issuer technology claim, not an independent performance assessment. The accounting construction ledger separately identifies a 10,000-tonne alkali-free line transferred to fixed assets at CNY 85.41567149 million, a 6,000-tonne yarn technical renovation transferred at CNY 30.89669936 million, and a 16,000-tonne line with CNY 0.71383051 million closing work in progress. It also lists a 9,000-tonne medium-alkali line at CNY 0.66043710 million, and project 207, labeled a 10,000-tonne furnace, at CNY 1.96668184 million. This filing supplies no reliable identity bridge connecting these ledger entries to the narrative Jiujiang project; capacity labels alone cannot support a merge. The 10,000-tonne finished-goods warehouse is storage, not manufacturing capacity. Overall work in progress fell from CNY 122.76213606 million to CNY 11.15166353 million after CNY 27.22237649 million additions, CNY 137.47510786 million fixed-asset transfers and CNY 1.35774116 million other reductions. Accounting transfers do not establish annual output or a simple sum of incremental capacity.

Reported consolidated construction in progress / 2002 / fy2002 consolidated construction ledger

RMB 11,151,663.53

Transferred to fixed assets / 2002 / fy2002 consolidated construction ledger

RMB 137,475,107.86

The related-party note identifies a US sales counterparty through a Chinese name and states that it shared a legal representative with Jushi Group's foreign shareholder. This source review has not established its exact English legal name; it is not described as a controlled subsidiary. Jushi Group reported CNY 139.83571972 million sales to that counterparty and CNY 65.81969646 million closing trade receivables from it. The agreement provided a sales commission of USD 0.05 per kilogram exported through the channel, with CNY 3.0424 million commissions accrued for 2002. The commission rate does not establish a complete export-volume series: the note does not provide a currency conversion or scope bridge for that calculation. This channel mattered for distribution and collection exposure, but the related-party description alone does not prove improper pricing or overdue balances. No recursive investigation of the counterparty is required for this filing account.

Reported related sales / 2002 / fy2002 jushi us channel

RMB 139,835,719.72

Reported related trade receivables / 2002 / fy2002 jushi us channel

RMB 65,819,696.46

The report describes irregularities in Jushi Group's earlier joint-venture formation: contributed net assets had not initially been appraised, and an equity change had occurred without board consideration. A foreign-investment approval certificate obtained on 29 March 2002 had shown the listed company at 48.04%. The issuer says it subsequently completed appraisal, government approval and registration changes confirming its 56.51% registered equity stake. The reassessed contributed net assets were CNY 236.4336 million, with the surplus treated as a receivable. Separately, because the foreign shareholder paid its contribution in installments, the listed company reports a 72.88% FY2002 entitlement to Jushi Group's equity or earnings based on actual contributions. The 48.04% earlier approval, 56.51% confirmed registered stake and 72.88% actual-contribution-based entitlement describe different dates and bases; none should replace the others in an ownership or profitability time series. The report attributes the remedial steps to the issuer; this extraction is not an independent legal validation.

Under a three-party restructuring agreement dated 28 June 2002, CCBM converted CNY 38.1648 million held at the affiliated finance company as of 27 June, including CNY 0.3674 million of interest, into a claim against the ultimate parent. The closing related-party schedule separately records CNY 38.16482754 million due from that ultimate parent, CNY 20.1 million due from the finance company, and CNY 1.54 million of loans plus CNY 1 million of building-purchase advances due from the building-materials import/export shareholder. The issuer says that shareholder had not repaid its opening funds and no usage fee was charged. Converting a deposit to a receivable did not establish cash recovery. The asset swap also transferred a separate CNY 9.70647213 million claim; this review does not equate it with the full closing parent claim or invent a missing reconciliation.

Related other receivable / 2002 / fy2002 ultimate parent transfer claim

RMB 38,164,827.54

Related other receivable / 2002 / fy2002 affiliated finance company claim

RMB 20,100,000

Related other receivable / 2002 / fy2002 import export shareholder loan

RMB 1,540,000

Nanjing New Materials was transferred as a whole for zero consideration, after negative audited net assets of CNY 0.66717141 million at 31 March; the report says registration changed on 14 November. The 80% Nanjing Jinbang Baiye stake was transferred at CNY 25.0862 million and registration changed on 25 November, but the entire share-price amount was still owed at the end of 2002. A 12 January 2003 subsequent confirmation extended payment to 30 June 2003; it was not a receipt. The related-party schedule gives a larger CNY 57.24337913 million amount due from the buyer for both equity and debt transfers, which must not be conflated with the equity price alone. On the funding side, the report states total closing amounts owed to Beixin Logistics of CNY 27.8625 million and a CNY 20.2268 million repayment on 8 January 2003, with the remainder still repayable. The January repayment is a subsequent issuer cash outflow, not recovery of disposal consideration.

The issuer's contingent-liability note reports guarantees of CNY 162 million short-term and CNY 184.1688 million long-term borrowing for Jushi Group, including CNY 25.955 million due within a year. Jushi Group separately guaranteed CNY 33.47 million short-term and CNY 45 million long-term debt for its Jiujiang company. These subsidiary guarantees must not be added to the parent amount as a single clean external group exposure, nor counted again as additional loans. The issuer also continued to disclose CNY 17.5 million guarantees for Jiangyin, CNY 10 million for Nanjing Jinbang Baiye, and CNY 20.55 million for Beijing Xiling after the disposal disclosures. Counterguarantees were reported for specified beneficiaries, but do not demonstrate release or recovery. A separate securities-investment loss-compensation guarantee was capped at CNY 18 million, with the issuer's securities account pledged and unable to close during the stated 27 March 2002-26 March 2003 term. The short-term investment note reports CNY 16.74766106 million net investments and says the stock/cash account was pledged. The cap, collateral book value, supported borrowing and any eventual loss are different measures; the stated expiry does not prove discharge.

Outgoing guarantee balance / 2002 / fy2002 parent jushi short guarantee

RMB 162,000,000

Outgoing guarantee balance / 2002 / fy2002 parent jushi long guarantee

RMB 184,168,800

Outgoing guarantee balance / 2002 / fy2002 parent jiangyin guarantee

RMB 17,500,000

Outgoing guarantee balance / 2002 / fy2002 parent nanjing jinbang guarantee

RMB 10,000,000

Outgoing guarantee balance / 2002 / fy2002 parent beijing xiling guarantee

RMB 20,550,000

CCBM sued the Pudong Great Wall building-materials counterparty and its parent on 19 September 2002 over occupied funds. The business narrative gives remaining principal of CNY 23.89 million plus about CNY 0.41 million usage fees and penalties, and says the court accepted the case and froze part of the defendants' property. The contingent-liability note instead specifies a CNY 26.44 million total claim, made up of CNY 23.86 million principal, CNY 0.4083 million usage fees and CNY 2.1717 million penalties. These two principal disclosures differ by CNY 0.03 million; the source does not reconcile them. Both are preserved here without choosing a corrected amount. Acceptance, freezing and a claim amount do not establish a favorable final judgment, settlement or cash collection. This historical reader does not backfill the later-year settlement into the 2002 case status.

A 30 May 2002 approval transferred 84.111 million shares, or 37.79% of CCBM, without consideration from the ultimate China New Building Materials Group to its wholly owned BNBM Group; the filing identifies BNBM as the direct controlling shareholder and retains the former holder as ultimate controller. This was a change of direct holder within the same group, not evidence of a new ultimate owner. Zhenshi held 22.26%. Issued share capital remained 222.6 million shares. The board proposed CNY 0.5 per ten shares, totaling CNY 11.13 million, with no bonus shares or reserve capitalization; it was a proposal at filing, not evidence of payment to shareholders. Routine meeting lists, director biographies and generic governance assurances are omitted from the reader; the specific joint-venture approval irregularities and related-party exposures are retained separately.

FY2002 as filed reports CNY 634.39418489 million main-business revenue, CNY 426.35778368 million main-business cost and CNY 2.28821455 million main-business taxes and surcharges, leaving CNY 205.74818666 million main-business profit. After other-business profit of CNY 3.73105677 million, selling expenses of CNY 23.20329090 million, administration expenses of CNY 114.27098921 million and finance expenses of CNY 36.12440128 million, operating profit was CNY 35.88056204 million. It was lower than the adjusted 2001 comparative of CNY 44.08252946 million despite higher revenue. Investment income of CNY 0.94754333 million, subsidy income of CNY 1.072432 million and net non-operating expense of CNY 4.66978528 million brought profit before tax to CNY 33.23075209 million. Deducting CNY 1.76134363 million income tax and CNY 16.40450092 million minority shareholders' profit leaves reported consolidated net profit attributable to the issuer of CNY 15.06490754 million. Subsidiary total profit and minority interests therefore cannot be counted as wholly belonging to the listed shareholders. These are historical accounting categories from this filing; later restated FY2002 comparatives are preserved separately.

Reported business revenue / 2002 / fy2002 consolidated as filed

RMB 634,394,184.89

Reported business cost / 2002 / fy2002 consolidated as filed

RMB 426,357,783.68

Operating profit / 2002 / fy2002 consolidated as filed

RMB 35,880,562.04

Reported profit before tax / 2002 / fy2002 consolidated as filed

RMB 33,230,752.09

Reported consolidated owner profit / 2002 / fy2002 consolidated as filed

RMB 15,064,907.54

The consolidated cash-flow statement reports operating inflows of CNY 617.16691833 million and outflows of CNY 528.63840505 million, producing CNY 88.52851328 million net operating cash. Investing used a net CNY 97.10988796 million; cash spent acquiring fixed assets, intangible assets and other long-term assets was CNY 96.01571986 million. This cash spending is not the same measure as project budgets, engineering additions or completed-capacity tonnage. Financing provided CNY 11.70593895 million net cash, and the statement reports a positive CNY 3.13127130 million exchange-rate effect. These components reconcile to the CNY 6.25583557 million increase in cash and cash equivalents and to closing monetary funds of CNY 98.36835466 million versus CNY 92.11251909 million at opening. Operating cash was below the net investing outflow before financing. The parent-company cash position was tighter: operating cash of CNY 24.85105786 million, investing outflow of CNY 32.43423278 million and financing outflow of CNY 29.11466102 million left only CNY 2.76804306 million closing cash. Parent and consolidated cash must not be interchanged.

Net cash from operating activities / 2002 / fy2002 consolidated cash

RMB 88,528,513.28

Net cash from investing activities / 2002 / fy2002 consolidated cash

RMB -97,109,887.96

Net cash from financing activities / 2002 / fy2002 consolidated cash

RMB 11,705,938.95

Cash net change / 2002 / fy2002 consolidated cash

RMB 6,255,835.57

Reported monetary funds / 2002 / fy2002 consolidated cash

RMB 98,368,354.66

Reported monetary funds / 2001 / comparative fy2002 consolidated cash

RMB 92,112,519.09

Net cash from operating activities / 2002 / fy2002 parent cash

RMB 24,851,057.86

Reported monetary funds / 2002 / fy2002 parent cash

RMB 2,768,043.06

At 31 December 2002 consolidated borrowings comprised CNY 300.47 million short-term loans, CNY 121.955 million current portions of long-term loans and CNY 223.21377186 million noncurrent long-term loans. The same filing gives CNY 366.932341 million, CNY 15.7766 million and CNY 312.92055969 million respectively at the prior year end. The decline in the noncurrent category therefore must not be read as an equal repayment of debt: the report specifically attributes much of it to maturity reclassification, including CNY 86 million of mortgaged borrowing moved into the current portion. The notes identify CNY 285.47 million of short-term guaranteed borrowing and CNY 15 million of mortgaged short-term borrowing. Support came from the listed parent for Jushi Group, Jushi Group for its Jiujiang company, and Zhenshi for specified subsidiary borrowings; these inbound loan guarantees differ from the issuer's separate contingent liabilities. The long-term category includes reported US-dollar and euro borrowing. Currency exposure and upcoming maturities matter for funding, but this filing does not supply a complete repayment calendar or demonstrate that all reported cash is freely available for repayment.

Reported short-term borrowings / 2002 / fy2002 consolidated maturity

RMB 300,470,000

Reported current long term borrowings / 2002 / fy2002 consolidated maturity

RMB 121,955,000

Reported long term borrowings / 2002 / fy2002 consolidated maturity

RMB 223,213,771.86

Reported short-term borrowings / 2001 / comparative fy2002 consolidated maturity

RMB 366,932,341

Reported current long term borrowings / 2001 / comparative fy2002 consolidated maturity

RMB 15,776,600

Reported long term borrowings / 2001 / comparative fy2002 consolidated maturity

RMB 312,920,559.69

Consolidated gross trade receivables were CNY 262.39576867 million at the end of 2002; the CNY 14.99895992 million allowance left CNY 247.39680875 million net. The same note reports CNY 182.42667942 million, or 69.52%, aged under one year, and CNY 17.91020772 million, or 6.83%, aged more than three years. Age is not the same as days past due. The five largest debtors accounted for CNY 108.4055 million, or 41.31% of the gross total. Bank acceptance bills were CNY 4.281885 million and the report says they were not pledged. In contrast, the parent company's trade receivables fell to zero because businesses had been disposed of and their accounts were no longer aggregated into its closing statements; this was not proof that their customers had all paid. Receivable quality and perimeter changes therefore need separate explanations.

Reported receivables gross / 2002 / fy2002 consolidated trade credit

RMB 262,395,768.67

Reported receivables allowance / 2002 / fy2002 consolidated trade credit

RMB 14,998,959.92

Bank acceptance receivables / 2002 / fy2002 consolidated bills

RMB 4,281,885

Consolidated other receivables were CNY 158.64480080 million gross and CNY 149.86698094 million after a CNY 8.77781986 million allowance. The five largest balances represented CNY 139.1888 million, or 87.74% of the gross total. The allowance note identifies CNY 2.97174 million of additional individually assessed provisions, on top of the age-based provision. The parent carried a different gross total of CNY 232.81748987 million and CNY 217.47037556 million net after CNY 15.34711431 million of allowances. These balances include financial-company and ultimate-parent claims and disposal consideration; they are not a second measure of customer sales credit or cash on hand.

Reported gross other receivables / 2002 / fy2002 consolidated other credit

RMB 158,644,800.8

Reported other receivables net / 2002 / fy2002 consolidated other credit

RMB 149,866,980.94

Reported gross other receivables / 2002 / fy2002 parent other credit

RMB 232,817,489.87

Reported other receivables net / 2002 / fy2002 parent other credit

RMB 217,470,375.56

Consolidated inventories increased to CNY 194.41259649 million before allowances from CNY 130.53565842 million in the same filing's opening comparison. Finished products of CNY 152.84315170 million made up most of the closing total. A CNY 0.82211472 million inventory allowance left CNY 193.59048177 million net; the decrease in allowances is not evidence that all stock was sold. Supplier prepayments were CNY 45.13054899 million, compared with CNY 62.58270199 million at the prior year end, with 85.12% aged under one year. Customer advances were CNY 40.82101832 million versus CNY 32.75322422 million. These are working-capital balances, not cash sales, a verified order backlog or finished-goods tonnes. Restructuring changed the balance-sheet perimeter and limits direct comparison with annual income figures.

Reported gross inventory / 2002 / fy2002 consolidated inventory

RMB 194,412,596.49

Reported gross inventory / 2001 / comparative fy2002 consolidated inventory

RMB 130,535,658.42

Reported prepayments gross / 2002 / fy2002 consolidated prepayments

RMB 45,130,548.99

Reported prepayments gross / 2001 / comparative fy2002 consolidated prepayments

RMB 62,582,701.99

The tax note gives a 15% parent-company income-tax rate and a general 33% rate for local subsidiaries, with specific historical relief: the Jiujiang business enjoyed three exempt years followed by two half-rate years from 2001, and Jushi Group's foreign-invested-enterprise relief began on 1 July 2001 with two exempt years followed by three half-rate years. These are the issuer's historical disclosures, not current tax guidance. FY2002 subsidy income was CNY 1.072432 million, comprising CNY 0.652432 million export-increment interest support and CNY 0.42 million technical-upgrade support. A separate approximately CNY 4.6835 million interest subsidy reduced interest expense and must not be double-counted as subsidy income. The report's non-recurring-item summary records CNY 2.03179205 million net non-recurring gains and CNY 13.03311549 million net profit excluding them, versus CNY 15.06490754 million reported net profit. Tax relief, financing support and disposals therefore form part of the earnings context rather than proof of operating productivity.

Beijing JingDu Certified Public Accountants issued an unqualified audit opinion dated 25 March 2003 on the FY2002 parent and consolidated statements prepared under the historical Chinese Enterprise Accounting Standards and Enterprise Accounting System. These statements are not presented as IFRS accounts. The report says that a CNY 3.2 million guarantee-related provision recognized in 2001 was corrected after a CNY 3.2 million payment and an equal substantive compensation in 2002: the 2001 comparative net profit was increased by CNY 3.2 million, opening retained earnings by CNY 2.72 million and surplus reserves by CNY 0.48 million. The FY2002 filing consequently presents adjusted 2001 consolidated net profit of CNY 4.67115265 million against an unadjusted CNY 1.47115265 million in its summary. This is a prior-period correction, not FY2002 recurring profit. The FY2002 as-filed revenue and net profit are CNY 634.39418489 million and CNY 15.06490754 million; later filings' restated comparatives remain separate evidence versions.

Reported consolidated owner profit adjustment / 2001 / fy2002 disclosed 2001 owner profit correction

RMB 3,200,000

Comparative owner profit / 2001 / fy2002 adjusted 2001 comparative

RMB 4,671,152.65

Comparative owner profit / 2001 / fy2002 unadjusted 2001 summary

RMB 1,471,152.65

In November 2002, CCBM agreed a related-party asset swap with its controlling shareholder, BNBM Group; shareholders approved it on 7 December, and the report says asset handover and registration changes were completed. The listed company transferred the assets and liabilities of the Changzhou building-plastics and Jiangyin chemical-plastics factories, its 90% stake in Xianyang Kaisheng, and a CNY 9.70647213 million claim against the ultimate parent. In return it acquired 90% of Beixin Technology Development and 18.546% of Beixin Logistics. The disclosed assessed values were CNY 91.9813 million for assets transferred out and CNY 92.1876 million for assets received, with a CNY 0.2063 million balancing payment. These are transaction valuations, not sales revenue or cash proceeds. The financial note separately records the acquired assets at CNY 84.3878 million using purchase-date book values plus the balancing payment; it does not record them at the assessed total. This reshaped the portfolio toward materials, technology investment and logistics while retaining the controlled glass-fiber business.

Reported transaction assessed value / 2002 / fy2002 swap out assessed

RMB 91,981,300

Reported transaction assessed value / 2002 / fy2002 swap in assessed

RMB 92,187,600

Reported acquisition book value / 2002 / fy2002 swap purchase date recorded

RMB 84,387,800

The 18.546% Beixin Logistics interest received in the asset swap was followed by a separate agreement on 7 December to acquire another 1.454% from BNBM's listed building-materials company for CNY 3.6995 million. The narrative says the registration changes were completed, and the commitments note explicitly gives 20% after this transfer: 18.546% plus 1.454%. However, both the consolidated and parent-company year-end investment schedules still list 18.546%, while the operating overview also uses that percentage. The report does not reconcile the separate purchase into those schedules. This reader therefore retains the transaction total and schedule percentage separately rather than rewriting the schedules or treating the difference as an unexplained naming mismatch. The report says no FY2002 investment income was included from the December-acquired logistics interest. Its disclosed full-year investee profit must not be treated as a contribution to the listed company's FY2002 earnings.

The financial notes distinguish the FY2002 income perimeter from the closing balance sheet. Nanjing New Materials contributed January-March income but was absent from the year-end balance sheet; the old Jiujiang factory, Changzhou and Jiangyin factories, Nanjing Jinbang Baiye and Xianyang Kaisheng contributed January-December income but were no longer included as those old entities in the closing balance sheet. Newly acquired Beixin Technology Development was included in the closing balance sheet but not in FY2002 income. The restructured Jiujiang company was included in Jushi Group's balance sheet but not separately in the listed issuer's FY2002 income table. The closing controlled-company list gives Jushi Group at 56.51%, Beijing Jinbang at 80% and Beixin Technology Development at 95%. Changes in assets, working capital and parent-company sales therefore reflect changes in the business perimeter as well as trading performance; a year-end ownership list alone cannot support a like-for-like growth comparison.

The parent-company statement reports CNY 129.39211534 million main-business revenue and CNY 104.97787340 million main-business cost, but an operating loss of CNY 33.81431094 million. CNY 43.38548178 million of investment income, including CNY 41.42454182 million equity-method income, supported parent net profit of CNY 7.86836658 million. Equity-method income includes subsidiary and associate results; it is not the consolidated group's investment-income total of CNY 0.94754333 million, and it is not cash received. The Jushi investment schedule separately reports CNY 28.5976 million of profits distributed and a CNY 38.56519497 million cumulative equity change. Restructuring also removed businesses from the parent year-end accounts. These distinctions explain why the parent accounts, controlled operating entities and consolidated statements require separate treatment.

Reported business revenue / 2002 / fy2002 parent as filed

RMB 129,392,115.34

Reported business cost / 2002 / fy2002 parent as filed

RMB 104,977,873.4

Operating profit / 2002 / fy2002 parent as filed

RMB -33,814,310.94

Reported profit before tax / 2002 / fy2002 parent as filed

RMB 7,868,366.58

The operating overview reports Jushi Group assets of CNY 1,201.33 million and full-year net profit of CNY 63.95 million; Beijing Jinbang had CNY 35 million assets and CNY 2.73 million net profit. These are operating-entity results, not profits entirely attributable to the listed shareholders. Newly acquired Beixin Technology Development's CNY 63.31 million assets entered the closing balance sheet, while its income was not consolidated for 2002. Beixin Logistics disclosed CNY 452.07 million assets and CNY 16.82 million full-year profit, but the report says no income was recognized from the December-acquired interest in FY2002. The overview also discloses losses for several disposed businesses; those losses cannot be removed from the annual results merely because the entities were absent at year end. Investment scope, control, acquisition timing and Jushi's actual-contribution-based economic rights must be retained when linking these operating facts across years.